Bitcoin's drop below $7k came after a 1000 BTC deposit on Huobi

After spending the majority of this week between $7,100 and $7,300, Bitcoin suddenly dropped below the $7k mark yesterday. The drop came without warning, but since then, new information has surfaced that may explain it.

The new information comes from the monitoring service, Coin Metrics. According to the data, it appears that the drop below the $7k mark came only minutes after one investor deposited 1,000 BTC on Huobi. As the investor started preparing to sell the coins, the BTC price sank by around $250.

Bitcoin price still dropping

Of course, many analysts, as well as traders, were not particularly surprised by the development. They have expected that BTC price will not manage to sustain itself for long at high levels. Now, many believe that the rebound will yet come.

Bitcoin even managed to remain above $6.900 for a long time yesterday, as the support managed to hold longer than expected. However, at the time of writing, the coin already sits below this level, as well. BTC price is currently at $6,857, and still trading in the red. The current price is only 1.09% lower than it was 24 hours ago, but the breaking of a $6.9k support is still meaningful.

Some analysts even expect that the coin could sink to $6.3k, or even lower. Meanwhile, Arcane Research has been researching the new data, and debating whether the Huobi order may have links to a PlusToken Ponzi scheme.

The scheme includes an entire series of PlusToken selloffs, likely for the purpose of manipulating the market.

Whales playing with crypto prices

The manipulation of Bitcoin price is, of course, nothing new. While schemes often try and do it, Bitcoin whales have been doing it for much longer. Only last year, one whale used huge amounts of money to defend the BTC price. They did it for no other reason than to win a bet against another whale, making the crypto market their playground.

Also, Glassnode recently revealed new data regarding the number of crypto whales. The number of those holding 1,000 BTC or more is now the highest it has been in the last two years. A number of Bitcoin wallets with at least 1 BTC is also high — higher than ever, in fact. What this shows is that investors tend to accumulate coins when the prices are low.